PORTLAND, Ore – If you’re planning on selling your
home this year, you will have heard a variety of “myths” about Portland Oregon
Real Estate Agents. Because of these
myths you may not be sure if hiring a real estate agent is best for you.
In this article, I will cover 8 common myths about
Real Estate Agents that most homeowners believe.
Myth #1 – Realtors Will Under Price Your Home for a Quick Sale
According to the National Association of Realtor’s 2013 Profile of Home
Buyers and Sellers, the average FSBO sales price was $174,900, while the
average price for a home represented by an agent was $215,000. Homes listed with a real estate agent sold
for nearly 23% more than homes sold by the owner. If you consider that the average commission
is 6% of the list price, the value of hiring an agent is substantial given that
the average seller will still have a higher profit on the sale of their home,
even after commissions are paid.
Additionally, the seller doesn’t have to spend hours marketing, showing
the property, and handle the extensive amount of paperwork needed to sell a
Myth #2 –Realtors Make Too Much Money
While the cost of commissions may seem high, the average annual salary for a real estate
agent is less than $36,000 a year. What
many sellers do not understand is that half of the commission is paid to the
cooperating broker and the remaining half that is earned is not pure profit to
the agent. Real estate agents have to
pay fees to their office and real estate company; MLS fees; national, state and
local realtor association fees; errors and omission insurance; marketing
expenses; continuing education and licensing fees; as well as many other
Myth #3 – Pay Less Commission to Your Portland Oregon Realtor, And
You Will Make More
This myth was created by discount brokers in the
effort to win more business for themselves.
The truth is you get what you pay for when it comes to selling Real
Estate. A full-service brokerage is able to afford
higher levels of marketing and service that discount agents can’t afford. As a result, full-service agents tend to draw
higher offers in a shorter period of time.
Reducing the cost of the commission by 2% doesn’t make the seller more
money when the price of their home ends up being discounted by 10% or more
because the discount agent couldn’t afford full market exposure.
Myth #4 – Realtors Will Make Me Spend Thousands on Repairs and
Repairs and updates are not needed to list a home
for sale, although a real estate agent may make some suggestions in order to
help a seller capture a higher price for the home, even after the cost of the
repairs and updates are taken out of the profit. Sellers can choose to sell their property
as-is should they not want to spend money preparing it to sell. There are some instances that a buyer’s lender
may require some repairs to be done if there are items that affect the overall
safety of the home, however this is rare and usually those repairs necessary
are items that can be paid out of escrow at the close of the home so that the
homeowner never has to pay for repairs out of pocket.
Myth #5 – Realtors Are ALWAYS Late For Appointments
There isn’t any excuse for tardiness among Real
Estate professionals and I take pride in always arriving early to greet my
clients since I know that your time and my time is valuable. The agents I work with are also on time for
their appointments and strive for a high level of professionalism. If you work with an agent that is habitually
late it is time to find a new agent.
Myth #6 – Realtors Must Show You Homes on Demand
Thousands of agents around the world will not work
with a buyer until they have signed an agreement and/or have been pre-approved
for a loan in the price range the home falls in. If you are early in the process to purchase a
home and have not yet applied for a loan, be upfront with the listing agent
when you want to see their listing. They
will likely be able to not only show you the home you are interested in, but
also refer you to lenders and answer questions you may have about the
purchasing process, which might even result in you finding the agent that is
the right match for you.
Myth #7 – Agents Get Kickbacks
Since the early 1970’s, it’s actually illegal for
Realtors to accept any form of financial compensation for recommending a vendor
according to RESPA, the Real Estate Settlement Procedures Act. Agents would be breaking the law and could
lose their job if they accepted a kickback.
Myth #8 – Agents Are Supposed To Tell You about Schools and Crime
Although I would like to tell my clients about the
schools or crime statistics in a Portland Oregon Neighborhood, that could be
considered “steering” or discrimination against a protected class which would
violate Fair Housing Laws. Most people
are surprised that their agent cannot disclose this information however your
real estate agent can tell you where you can find this information.
To learn more truths about common Real Estate myths,
or to view Portland Oregon homes for sale, contact me today by calling (503)
595-8800 or CLICK HERE.